Studios/bacjhelor apts??? - Posted by Mark (SDCA)

Posted by phil fernandez on April 20, 1999 at 04:48:44:

Hi Mark,

To me the cadillac of apartments is the two bedroom unit. Even single people like the second bedroom for guests or a computer room or whatever.

Studios and effeciency apartments equal more turnover which equals more work to get them ready to rerent and to rent. People stay alot longer in the twos.

Saying that I do not like the mix at all with 5 studios and 4 one bedrooms. I wouldn’t buy it.

Studios/bacjhelor apts??? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on April 19, 1999 at 16:09:10:

Anyone own any?? Are they worth owning?? The only income property that I have been able to locate that isn’t total sludge is a 9U with 5 studios and 4 1BD. This is not my ideal mix. In fact, I have consciously avoided mixes like that. Anyone have experiences to share??

As an aside, anyone have any strategies for buying in a massive seller market. (I have seen properties advertised with GRM of 11+ (yes, I DO mean GRM not CAP), multi-units that have $300 per month negatives and still require 20K down etc. I mean… why???)

Thanks,

Mark

Re: Buying in a seller’s market - Posted by Jake

Posted by Jake on April 20, 1999 at 23:42:32:

Mark: It looks like you’re in San Diego; I’m in Los Angeles, where the market is equally insane.

What I’m finding is that 1, 2, 3 years ago I could buy high-end props and make them cash flow, now I have to go down market.

The difference seems to be that the speculative, pride-of-ownership buyers are willing to pay full price for the top end stuff. Since they don’t get satisfaction by buying bread-and-butter properties, they won’t be competing with you.

What about YOUR market? - Posted by CarolFL

Posted by CarolFL on April 20, 1999 at 07:15:03:

Mark, We have over a dozen 1 bdrm and a couple of efficiencies. NO PROBLEM renting them - wish we had 100. And we rent mostly mid to lower end properties on the high end of the price range.

But that’s OUR market, and we knew it when we bought the properties.

With all of the single people, couples waiting to have kids, retired people, and young folks wanting to move into their first apt, we have absolutely no problem.

Of course, we have no problem with the 2’s and 3’s either, so maybe it’s not so meaningful!

Good luck!
Carol

Re: Studios/bacjhelor apts??? - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 20, 1999 at 06:44:56:

I would certainly agree with Phil on this.

I have only bought 2 and 3 bedroom townhouse rental units. These are roughly equivalent to the multifamily units you are looking into. In the same complex, I have seen several one bedroom units that have been up for rent for 6 months or more. And the rents are well below market. Noone wants to rent a one bedroom unit nowadays.